Trade wars open Mexican backdoor to Chinese autos

MXPE Weekly Essentials ft. electricity’s private sector boost, Canadian tourist boom, and other highlights in Mexican politics, policy, and markets from the past week.

MXPE Weekly Essentials. Only the most important news in Mexican politics, policy, and markets from the past week.

Last week’s highlights:

• Chinese backdoor?—Nissan blamed “changing consumer preferences” when it announced the closure of its central Mexican plant of Aguascalientes last year. But the context in which the announcement was made couldn’t be ignored, as Donald Trump set the North American auto-industry alight with tariffs. Now, two finalists have emerged from the bidding process to acquire the Nissan factory: BYD and Geely. Both Chinese auto companies have been hit by 50% tariffs imposed by Mexico earlier this year and are hoping to avoid paying them by setting up shop on Mexican soil.
  
  Most attention has been placed on whether or not the US will be upset about this development. The Mexican auto industry itself should be worried,